USD/MYR Technical Analysis

The US Dollar was higher against the Ringgit on Tuesday and is now trading at 4.2250. Despite a weak macroeconomic agenda, the US Dollar made a significant appreciation in anticipation of the next FOMC meeting to be held on Tuesday and Wednesday. The report with the economic projections for 2022 is due out on Thursday. The market is starting to price a possible acceleration in the tapering process and a 0.75% increase in the interest rate for the USD in 2022. This has the potential to make the USD gain more strength against Ringgit. From a technical point of view, if the USDMYR manages to break above 4.2420, it could rise to 4.2900 in a few weeks. On the other hand, it is possible that the USDMYR will remain sideways over the next few days and some important movement will only happen after the year-end holidays.